Record Details

Evaluating vendor managed inventory systems: how incentives can benefit supply chain partners

The Journal of Business Economics and Management

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Field Value
 
Title Evaluating vendor managed inventory systems: how incentives can benefit supply chain partners
 
Creator Birim, Sule
Sofyalioglu, Cigdem
 
Subject vendor managed inventory
supply chain contracts
distribution network
simulation
modeling
inventory management
incentive systems
performance
 
Description In a vendor managed inventory (VMI) system, the effects of financial incentives on the entire supply chain (SC) and on the individual firms are investigated in this study. To this end, order management, order replenishment and inventory control activities of a two-echelon SC are examined via modeling using discrete event simulation. By determining the appropriate parameters for the incentives with scenario analysis, balanced profit distribution between buyers and a supplier in VMI is established. Simulation outputs of the traditional model, VMI only and VMI with incentives models are compared based on profits with paired comparisons. In VMI with incentives, both buyers, and the supplier experience higher benefits than the traditional system. This study provides a new method which eliminates the unbalanced benefit distribution due to VMI and offers almost equal benefits to the participating firms. With financial incentives, firms are encouraged to share information with each other to work in a coordinated SC.
 
Publisher VGTU Press Technika
 
Date 2017-02-05
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journals.vgtu.lt/index.php/JBEM/article/view/762
10.3846/16111699.2016.1266695
 
Source Journal of Business Economics and Management; Vol 18 No 1 (2017); 163-179
2029-4433
1611-1699
 
Language eng
 
Relation https://journals.vgtu.lt/index.php/JBEM/article/view/762/560